Fuzzy Logic

Discussion in 'Automated Trading' started by Brabed, Mar 27, 2009.

  1. Brabed


    I am developing a trading system that will eventually be automated. I have thought more and more about using fuzzy logic in my system. Last night, I missed an entry order because the price reached 5 pips or so away from my entry, before it rocketed downward.

    I was thinking, if I had some sort of fuzzy logic that said, if price is 'close' to my limit order and momentum is 'neutral' or 'turning down', then 'Enter', instead of the black and white 'Enter at 1.3425'

    Since the markets themselves are fuzzy, trading systems that utilize fuzzy logic seem like a given. Has anyone used FL in your systems and are there any resources links for info. Thanks
  2. Several years ago I ventured down that path. Interestingly enough, It spawned new ideas and approaches so my initial framework was abandon.

    What are you using?

    Mathematica / Matlab C++/scripting

    Check your pm for link to books; no charge.